As organizations hope to take advantage of Thomas Friedman’s flattened world, they must increasingly recognize that corporate governance and internal controls are no longer tools that are solely important for large multinational corporations in the European Union and the United States. This paper explores the interplay between Country Governance and Corporate Governance and how this interplay is critical for successful economic development in Latin America. In particular, it investigates the degree to which the impact of government corruption on the development of disclosure practices by both Multinational Corporations and Small and Medium sized Entities (SMEs) impacts on foreign direct investment. Moreover, these policies often affect the relationships that foreign corporations can facilitate under laws such as the US Foreign Corrupt Practices Act. Internal control and Corporate Governance are examined as tools that organizations implement rather than merely talk about.
References
1.
AboroaR. (1999). “Towards 2005: Profits, People, and the Future of the Regulatory State in the free Market Model”, Law and Policy in International Business, 30, 131–138.
2.
ArgandoñaA. (2007). “The United Nations Convention Against Corruption and its Impact on International Companies”, Journal of Business Ethics, 74(4), 481–496. Retrieved March20, 2008, from ABI/INFORM Global database. (Document ID: 1348599721).
3.
ChambersR.JacobsR. (2007, August). “Assessing Political Risk”, The Internal Auditor, 64(4), 58–62, 64, 8. Retrieved March21, 2008, from ABI/INFORM Global database. (Document ID: 1318885761).
4.
Committee of Sponsoring Organizations of the Treadway Commission (COSO) (2002). Internal Control – Integrated Framework. New York: AICPA.
5.
DallasG. (2004). in Governance and Risk, DallasG. (ed.). New York, NY: McGraw Hill.
6.
de la TorreASchmuklerS. (2007). Emerging Capital Markets and Globalization: the Latin American Experience. Palo Alto, CA: Stanford University Press.
7.
Doing Business Report (2008). http://www.doingbusiness.org/economyrankings/.
8.
FieldA. (2006, July10). “Corruption crackdown”, Journal of Commerce, 28–29. Retrieved March20, 2008, from ABI/INFORM Global database. (Document ID: 1076165891).
9.
FriedmanThomas L. (2006). The World is Flat (updated edition). Farrar, Straus, Giroux: New York, NY.
10.
GalloAndrés (2008). “Winds of Change in Latin America: Populism, Pro-Market Policies and the Challenges of Sustainable Economic Growth’, Journal of Interdisciplinary Economics, 19(4).
11.
GómezA.FrancoR. (2007). “Survival Always Trumps Ideology: A Case Study”, Human Organization, 66(3), 270–281. Retrieved March17, 2008, from ABI/INFORM Global database. (Document ID: 1384390111).
12.
GovrevitichP.ShinnJ. (2005). Political Power & Corporate Control. Princeton, NJ: Princeton University Press.
13.
GrayS. (1988). “Towards a theory on Cultural Influence on the Development of Accounting Information Systems Internationally”, Abacus, 24(1), 1–15.
14.
GuaschJ.L.SpillerP.T. (1999). Managing the Regulatory Process: Design, Concepts, Issues, and the Latin America and Caribbean Story. Washington, D.C.: World Bank Publications.
15.
GuptaV.HangesP. (2004). “Regional and Clustering of Societal Cultures”, in Culture, Leadership and Organizations, HouseR.HangesP.JavidanM.DorfmanP.GuptaV. (eds). Thousand Oaks, CA: Sage.
16.
Gyimah-BrempongK.Munoz deS. (2006). “Corruption, Growth, and Income Distribution: Are there Regional Differences?”, Economics of Governance, 7(3), 245–269. Retrieved March20, 2008, from ABI/INFORM Global database. (Document ID: 1079244641).
17.
HussainI. (2006, October). “GLOBAL Compliance”, The Internal Auditor, 63(5), 52–56, 8. Retrieved March17, 2008, from ABI/INFORM Global database. (Document ID: 1152634821).
18.
HusteadB. (2002). “Culture and international anti-corruption agreements in Latin America”, Journal of Business Ethics, 137(4), 413–422. Retrieved March20, 2008, from ABI/INFORM Global database. (Document ID: 128635301).
19.
HoffmanW. (2007, August13). “Customs vs. crime”, Journal of Commerce, p. 1. Retrieved March20, 2008, from ABI/INFORM Global database. (Document ID: 1319013231).
20.
Kapuria-ForemanV. (2007). “Economic Freedom and Foreign Direct Investment in Developing Countries”, The Journal of Developing Areas, 41(1), 143–149, 151–154. Retrieved March20, 2008, from ABI/INFORM Global database. (Document ID: 1421044231).
21.
KurtzmanJ.YagoG. (2007). Global Edge: Using the Opacity Index to Manage the Risks of Cross-Border Business. Boston, MA: Harvard Business School Press.
22.
LuqueM.SJavidanM. (2004). “Uncertainty Avoidance”, in Culture, Leadership and Organizations, HouseR.HangesP.JavidanM.DorfmanP.GuptaV. (eds). Thousand Oaks, CA: Sage.
23.
MichelmanJ.NowakA. (2007). “Internal Control and Corporate Governance in Small and Medium Sized Entities in Poland,” at the “Informacja Finansowa I Jejewykorzystanie W Warunkach Stosowania MSR/MSSF,” sponsored by Warsaw University, School of Management, October19–20, 2007, Warsaw, Poland.
24.
MolinaS. (2007, September). “Country Risk: Yes or No?”, Oil & Gas Investor, 27(9), 82–84. Retrieved March20, 2008, from ABI/INFORM Global database. (Document ID: 1347386791).
25.
Moreno OcampoL. (2001, September). “Is the law starting to rule?’, Latin Law, 1, 42–43. Retrieved March17, 2008, from ABI/INFORM Global database. (Document ID: 84982816).
26.
OECD Principles of Corporate Governance (2004). OECD Publications Service, 2, Paris, France.
27.
ShapiroB.MatsonD. (2008). “Strategies of resistance to internal control regulation”, Accounting, Organizations and Society, 33(2/3), 199. Retrieved March20, 2008, from ABI/INFORM Global database. (Document ID: 1410570291).
28.
Shearman, & Sterling, LLP. (2008). Recent Trends and Patterns in FCPA Enforcement/ FCPA Digest, February21, http://www.shearman.com/lit_fcpa_digest_022108/.
29.
SinghA.CollynsC. (2005). “Latin America’s Resurgence”, Finance & Development, 42(4), 8–13. Retrieved March17, 2008, from ABI/INFORM Global database. (Document ID: 971205911).
30.
Tendencias (2000). Competitive Intelligence in Latin America, http://tendencias.infoamericas.com/market_reports/2000/0400_regional_trends.pdf.
31.
The Latin Approach (2007). International Financial Law Review, 51–53. Retrieved March20, 2008, from ABI/INFORM Global database. (Document ID: 1298206991).
UngarM. (2002). Elusive Reform: Democracy and the Rule of Law in Latin America. Boulder, CO: Lynne Rienner.
34.
ValenzuelaV. (2005, December). “Putting Latin America Back on the Map”, Finance & Development, 42(4), 16–17. Retrieved March17, 2008, from ABI/INFORM Global database. (Document ID:971205901).
